Three Rules by Alan Lewin ( Paper 2.6 )

In order to succeed in Paper 2.6, you have to practise past papers before the exam and then meet the expectations of the examiner. Knowledge is not enough. There are three key rules you should follow to be successful in the Paper 2.6 examination.

EXAMINATION RULE 1

The examiner expects candidates to have appropriate knowledge.
Candidates are expected to make a reasonable attempt at the examination. Examinable knowledge is stated in the Syllabus and Study Guide so candidates know what will be covered in the exam. Given that there are seven major sections to the syllabus, and six examination questions on each paper, you can probably expect roughly one question from each syllabus area in each examination. This is not to say that two questions could not be directed to the same area of the syllabus, but three would be unlikely as it would place too much emphasis on one area.

In other words, candidates are expected to be aware of the syllabus and to have studied the knowledge relating to each syllabus area. If a question is asked, for example, on an engagement letter, then candidates should know the contents of that letter and be able to list those contents in an answer.

EXAMINATION RULE 2

Practise applying your knowledge by attempting examination-style questions under examination conditions.
It may seem an obvious point, but a good method of obtaining a pass in the Paper 2.6 exam is to practise answering questions under examination conditions.

A question such as ‘List the contents of an engagement letter’ can be answered with classroom theory, ie studying from a textbook. However, the question: ‘Explain the reasons why you may not wish to accept the engagement for the audit of the XYZ company’ requires knowledge of the specific company. This information will be available in the scenario in the examination question. What you have to do is identify relevant parts of the scenario and use those in the answer. In other words you are applying your knowledge of engagement risk to a specific situation.

The best method of preparing for these questions is practise. It allows you to learn the technique of reading through a question, to identify appropriate points, and to use those points in your answer.

EXAMINATION RULE 3

Identify the point, explain it, relate it to the scenario.
It is important to identify the point, explain it, and relate it to the scenario, providing the ‘correct’ amount of writing in an answer.

The following section is based on the Pilot Paper question about E-wheels (click here to view a copy of the Pilot Paper in PDF format). It's probably helpful to have a look at the question so you have a clearer understanding of the comments below.

E-wheels is a company selling cars on the Internet. The key points of the scenario are:

• there is a competitive market
• management disagreements
• possible going concern issues
• question focus on planning.

Part (b) of the question requires you to explain the risks associated with the audit. As part of your approach to answering the question, you should read the scenario to try and identify the risks for this particular audit. You should note that one of the reasons you may not want to accept an engagement is because this is the first year you will have audited this client. Your answer could be simply: ‘First year audit’.

The comment shows you have identified a reason for having a higher risk on the audit. However, there is simply not enough detail to show why the point is relevant to this particular client. Your next attempt at the same point could be: ‘As this is the first year of audit, care must be taken as mistakes could be made due to lack of knowledge of the client.’

The answer now explains the problem of this being a first year audit, but not for E-wheels. So instead of gaining the one mark available, you have probably only obtained half because the answer is missing some vital information. Ask yourself: ‘Why is there a particular problem in the first year of audit for the E-wheels client?’ A good answer is:

‘This is the first year we have audited E-wheels. The directors require an unmodified audit opinion suggesting they may put pressure on the auditor to complete the audit quickly. Haste and lack of knowledge of a new client may mean the auditor will miss important points.’

As your final answer this is much better. You have now shown why a first year audit is a relevant comment for E-wheels by applying your knowledge to the specific situation. You could add more words but these would almost be superfluous. In an exam you would now move onto the next point.

CONCLUSION

The three simple rules for the Paper 2.6 examination are:

• Rule 1: the examiner expects candidates to have appropriate knowledge. This knowledge will be examined in knowledge-based questions.
• Rule 2: practise applying your knowledge by attempting examination-style questions under examination conditions. This gives you the confidence to attempt the real examination.
• Rule 3: for application questions: identify the point, explain it, and then relate it to the scenario. This shows you can relate knowledge to a specific scenario.

Hopefully these rules will help ensure you are prepared for the Paper 2.6 examination.

Alan Lewin is examiner for Paper 2.6

Just don't know why

Don't know why there will be so many things that can happen at the same time?
Don't know why it is just so simple to change my mind?
Maybe this is the characteristic of Pisces,follow what your heart tells you and follow your emotion.
Am i right?Should i change?
I just know that something had happened,if something had happened, there are no turning back,the feeling changed,everything will not be the same anymore,I just need to accept that.

Never think how actually am i in others mind........
Just not really sure how others think of me?What is my position?
Am i don't want to ask, don't want to think or not dare to ask?
Because don't want to know the answer?
Hardly to accept what people think of me?
Or i just don't care how others think of me,i will be myself no matter what others said about me.
Just think i am helpless,helpless to other's problem,helpless in helping others,just feel helpless...
Don't know how to help?What more i can do for them?Beside lending ears and give my opinion?
What else?Is it just enough?Or it worsen the situation?

I knew the answer,i am not God,i can't do whatever i want,i just don't have the power to help everyone,they should help themselves sometimes,i knew everything,but it is just so many things that happen at the same time make me think around...

I know i will be ok.....just Don't know why?

Welcome To My Life - Simple Plan

Do you ever feel like breaking down?
Do you ever feel out of place?
Like somehow you just don't belong
And no one understands you
Do you ever wanna runaway?
Do you lock yourself in your room?
With the radio on turned up so loud
That no one hears you screaming

No you don't know what it's like
When nothing feels all right
You don't know what it's like
To be like me

To be hurt
To feel lost
To be left out in the dark
To be kicked when you're down
To feel like you've been pushed around
To be on the edge of breaking down
And no one's there to save you
No you don't know what it's like
Welcome to my life

Do you wanna be somebody else?
Are you sick of feeling so left out?
Are you desperate to find something more?
Before your life is over
Are you stuck inside a world you hate?
Are you sick of everyone around?
With their big fake smiles and stupid lies
While deep inside you're bleeding

No you don't know what it's like
When nothing feels all right
You don't know what it's like
To be like me

To be hurt
To feel lost
To be left out in the dark
To be kicked when you're down
To feel like you've been pushed around
To be on the edge of breaking down
And no one's there to save you
No you don't know what it's like
Welcome to my life

No one ever lied straight to your face
No one ever stabbed you in the back
You might think I'm happy but I'm not gonna be okay
Everybody always gave you what you wanted
Never had to work it was always there
You don't know what it's like, what it's like

To be hurt
To feel lost
To be left out in the dark
To be kicked when you're down
To feel like you've been pushed around
To be on the edge of breaking down
And no one's there to save you
No you don't know what it's like (what it's like)

To be hurt
To feel lost
To be left out in the dark
To be kicked when you're down
To feel like you've been pushed around
To be on the edge of breaking down
And no one's there to save you
No you don't know what it's like
Welcome to my life
Welcome to my life
Welcome to my life

The Most Common Mistakes in the Exam Hall

1. Not reading the question properly, and thereby failing to spot the easy marks. This is the biggest sin of exam taking and one of the most common errors. You should make sure you pick out the questions you can most easily answer in your first read through of the paper.
   
   
2. Answering the question you would like to have been asked, not the one that was asked. This is another danger linked to not reading the paper through carefully before you start. Make sure you understand the wording of the whole question don't be blinded by a few key terms that suggest you are on a pet subject.
   
   
3. Letting yourself be distracted by watching what other people in the hall are doing. If the candidate next to you starts scribbling straight away, ignore them. They can have assessed the whole paper properly and they will almost inevitably run out of time by the end of the exam. This is no time to be following the herd so hold your nerve.
   
   
4. Poor time management - spending too much time on questions that have too few marks. Spend a few minutes at the outset planning how much time you should devote to each response; set time limits for yourself and stick to them. It as simple as that.
   
   
5. Not understanding the verbs used - Explain, define and illustrate. Many marks are lost needlessly by candidates who fail to grasp the true meaning of the question. If you are asked to define a term, do just that. And if you are asked to illustrate, remember to provide examples from the question or real life.
   
   
6. Not using the mark allocation as a guide to the number of points to be made. Providing a list of bullet points, when a more full answer is required. Again, this is a point about how full and how organised your answer should be. The allocation of points will give you an indication of how to prioritise and what style of writing you should use.
   
   
7. Poor layout - not using gaps, headings and so on. The examiner doesn want to be faced with reams of unorganised script anymore than you do when you pick up a text book. Guide the examiner as much as possible and impress him with your organisational skills.
   
   
8. Focussing too much of your answer on theory, when application of the issues of the question is more important. You need to read into the question to show that you can apply the rules in practical set ups.
   
   
9. Not having a pen (and spares), rule, (template, if required) and calculator (with spare batteries). This one is self explanatory and inexcusable.
   
   
10. Not allowing enough time to get to the exam hall in time - plan the journey, make allowances for traffic jams and so. Turning up early may not be ideal in terms of giving you plenty of time to develop butterflies, but consider how much more stressed you will feel stuck in a traffic jam five miles away, with only ten minutes to go.

Preparation in terms of exam knowledge is important, but understanding exam technique and how to cope with the exam stress, is vitally important.

Exam advice for breakfast

ACCA students were out in force at the exam-busting breakfast briefing put on by Accountancy Additions and FTC recently.

FTC's Paul Merison told students sitting 3.1 that Kim Smith was a 'practical examiner'.

He stressed to pass this paper students must read the requirements first. 'Answer all the questions' was another Merison 'must'.

He said: "If you leave 20 per cent out you will fail. As a professional in practice if you run out of time you still have to provide something. It's not all perfect but you do it. The same applies in the exam hall."

Smith's money laundering feature in February is a good tip for June, he added.

With part 3 exams it is not all about writing, stressed Prentice. "Think before you put pen to paper don't just bang the first thing down that comes into your head."

*Interesting fact: Some 80 per cent of the breakfast audience who tunred up at 8 am were women. And, many of the men who 'got out of bed' were late.

ACCA June 2005 Exam Tips

Dear Friends,

The following are the tips that i get from the net till this moment.I will try to get as much as i can for your reference.However i wish you to take note that all the tips are based on the lecturer's best guess, it is just for reference and should not be over-concentrated and over-relied.

Finally,accept my greatest wishes in your coming exam and wish that everyone of you pass the papers! Gambate !

Ching

~~ Tips from BPP,LVMT,FTC,LCA ~~

WARNING: Tips are no substitute for revision!

Paper 2.1 - Information Systems

FTC Singapore
Lecturer - Mr Edwin Ee

- IS Management : outsourcing
- IS Management : Legacy systems
- IS Management : make versus buy
- IS management : cost centre / profit centre / corporate overhead
- Feasibility Study : financial techniques – ROI, payback, DCF
- Feasibility Study : economic / technical / social / operational feasibility
- Project management : project quality plan / role of project manager
- Project management : risk management
- Project management : network diagrams / gantt charts / project mgnt software
- SDLC : structured approach / waterfall vs spiral
- Structured Techniques : ELH / Case Tools / 4th GL / Prototyping
- Maintenance : Change control procedures
- Quality assurance : what quality steps ? / V-model
- Quality assurance : adoption of standards
- Systems evaluation : metrics : methods for measuring system performance
- Computer security : threats / types of controls
- Computer security : disaster recovery planning
- Computer security : Data Protection Act

FTC UK

Managing information systems

Strategy – short question perhaps relating to reasons for the development of strategy or alignment

IT opportunities – general question in the context of a case i.e. how an organisation may use technology to enhance its position

Costs and benefits – could be a compulsory question relating to the classification of cost and description of an appropriate method to evaluate economic feasibility

Legacy systems – although the March article of for 3.4 and makes no reference to 2.1 in the header useful to read – no past exam question

Project management – potential for a theory question similar to J03 relating to the creation of a plan for the improving time management – also consider terms of reference and PQP.

Designing information systems

Methodologies – explanation of the various development approaches including waterfall, spiral and hybrid – also consideration of the benefits of each approach

Techniques – potential question on either entity modelling or entity life histories.

Case tools – discussion in relation to improving management of the design process, perhaps linked to prototyping and external design.

Evaluating information systems

Security – any aspect but viruses, remote access and legislation seem to be key issues

Quality assurance – and the V model and the improvements which result

Metrics – discussion of the creation to standards to evaluate the success of the systems – perhaps also the explanation of weighted ranking or bench marching.

LCA

• Feasibility study
• Implementation of systems
• Packages v bespoke systems
• Protyping and case tools
• Programme testing

Paper 2.4 - Financial Management & Control

FTC Singapore
Lecturer - Mr Nicholas Blain/Mr Saminathan/Ms Lee Pei Yee

Q1
Case study
Investment appraisal
- Relevant and non-relevant costs
- Lease or buy
- Advantages of each appraisal methods
- Discuss other non-financial factors

Q2 - Q4
Management accounting
- Budgets, forecasting techniques
- Performance measurement
- Activity based costing

Financial management
- Objectives of stakeholders
- Raising finances: debt vs equity
- Rights issue
- Share valuation
- Factoring

FTC UK

Investment Appraisal - to include inflation, tax, relevant cost. May be lease Vs buy, possibly capital rationing.

Working Capital - All aspects of working capital – including cash budget, stock and debtors. May also include cash management since the Miller Orr formula has ‘appeared’ on the formula sheet.

Ratios -Could be part of working capital, or more focused towards general evaluation of a company, including long term finance

Budgeting - may include cash budget as above, possibly some forecasting (especially regression)

Performance measurement -possibly divisional performance evaluation, may include index numbers to appraise performance.

LVMT

• Financial management objectives
• Management of working capital (financing types, debt factoring/discounting, cash and stock)
• Sources of finance (equity and debt)
• Capital expenditure and investment (NPV, IRR, capital rationing, borrow or leasing options)
• Decision-making (product mix, make/buy decisions)
• Standard costing and variance analysis (mix and yield variances, operating statement)
• Budgeting and budgetary control (production budget, cash budgets, rolling budgets, top-down/bottom-up)

BPP

Section A

The compulsory section A of the exam has focused on investment appraisal or working capital in the past. As Investment appraisal was the main topic of December 2004’s exam it is likely that working capital will come up in June.

• Stock management (EOQ and JIT systems) – Q95 FRANTIC, Q58 JIT and EOQ
  
• Cash flow forecasts – Q88 (a) JACK GEEP, Q92 AMBER PLC

Section B

In section B of the exam there will be two questions on Financial Management (one of which will be on investment appraisal). The other two questions will be on areas from the Management Accounting section of the syllabus.

• Net present value (NPV) calculations - Q70, Q80 BENLAND, 87 WATER SUPPLIES LTD 93 SPENDER CONSTRUCTION
  
• Sensitivity analysis - Q77 BURLEY PLC
  
• Capital Rationing - Q82 Filtrex, Q83 PI
  
• Sources of equity - Q62 Burnsall, Q63 Newsam
  
• Mix and yield variances - Q20 Hairdressers

Paper 2.5 - Financial Reporting

FTC Singapore
Lecturer - Mr Roy Goh/Mr Saminathan

1. Consolidated Balance sheet with fair value adjustments and other interco. adjustments.FRS 31 Joint ventures could be included with proportional consolidation.
2. Published accounts - Income statement & balance sheet with adjustments on - leasing, revaluation of assets, deferred tax,provisions & financial instruments.
3. FRS 18 -revenue recognition issues together with other substance over form issues.
4. FRS 7 - Cash flow statement - possibly direct method with ratios included.
5. Mini std. questions
- FRS 8 & FRS 35/FRS 105
- FRS 33 - EPS
- FRS 12 - deferred tax

FTC UK

INTERNATIONAL

CBS and CP&L

Published accounts,EPS ?(maybe restatement or something bit different to normal IS and BS)

Interps (but don’t neglect cashflow)

Substance/IAS37

IFRS 1

BPP

Section A

Section A will comprise of one compulsory question that will examine group accounting. Group accounting is a core area and this question could ask you to produce a consolidated balance sheet and/or income statement (profit & loss account) and usually includes a related discussion element.

Section B

Section B will comprise four questions out of which candidates should select three questions. The examiner, Steve Scott has stated that the style of the paper would remain fairly static:

Question 1

• The first question will be preparation/restatement of an income statement (profit & loss account) and balance sheet. It could also include a statement of changes in equity (reconciliation of movements in reserves note). This question normally requires adjustments for depreciation, tax and dividends. Others may relate to debt factoring or other substance over form issues, finance leases, financial instruments, share issues and inventory (stock) valuation. There may be further disclosure requirements re discontinued operations or an earnings per share calculation.
  

Question 2

• The second question will be a written question examining theoretical/conceptual areas or accounting standards. This could be on tangible or intangible assets, impairments, accounting policies or leases with reference to the Framework for the Preparation and Presentation of Financial Statements (Statement of Principles).

Question 3

• The third question is likely to examine interpretation and/or cash flow statements, and may include discussion of why, for example, related party or discontinued operations disclosures are useful.

Question 4

• The fourth question has no specified format or content and will cover other areas of the syllabus. The examiner frequently includes a mixed bag question, which examines three or four different accounting standards. Possibilities this sitting are: IFRS 1, governments grants, substance over form issues, accounting policies or financial instruments.

Relevant Articles

First time adoption of International Financial Reporting Standards - Steve Scott

Paper 2.6 - Audit and Internal Review

FTC Singapore
Lecturer - Ms Helena Johnson

Alan Lewin is a new examiner. He has not been responsible for any of the 2.6 papers to date and as a result it is impossible to identify the topics that will be examined in June.

I suggest you focus your revision on the key syllabus areas:

(a) Professional ethics especially the specific guidance in respect of independence
(b) The use of the audit risk model by external auditors
(c) The role of the internal auditors in risk management and corporate governance
(d) The control objectives and internal control procedures you would expect to find in the sales, purchases
and payroll systems.
(e) The substantive tests used to gather audit evidence in respect of the five balance sheet assertions,
especially in relation to inventory, accounts receivable and accounts payable.

Corporate governance is a particularly important topic as Alan Lewin has recently moved it from the 3.1 to the 2.6 syllabus.

Other topics to consider include:

(a) The concept of materiality
(b) The use of analytical procedures during the planning, evidence gathering and review stages of the
audit process
(c) The use of computers to increase efficiency
(d) Engagement letters, management letters and management representation letters
(e) External audit reports
(f) The responsibilities of auditors and directors in respect of events after the balance sheet date, the going
concern assumption,fraud, error and non compliance with laws and regulations
(g) The advantages and disadvantages of outsourcing the internal audit function

Remember Alan Lewin is very keen to examine your understanding of the audit process rather than simply your knowledge. Therefore you must be prepared to handle practical scenario based questions.

FTC UK

Ethics - Independence and Conflicts of Interest

Planning - assessing audit risks

Internal Controls - sales/purchases

Substantive Testing - stock, fixed assets

Review of audit - going concern

Audit reports - practical scenarios

Internal Audit - role in corporate governance / business risk analysis

BPP

Please note that there is a new examiner this sitting.

• Internal audit/ Internal review – Following the new examiner’s recent article on how the internal audit department can assist in corporate governance and risk management, it is possible that this area could be tested, although articles are not frequently examined in this paper. Note that in addition to a specific question on internal audit or reviews conducted by internal or external staff, the question could be in the form of a report to management on control weaknesses with recommendations, very similar in substance to that produced by an external auditor (see Systems and Controls below) (P&R kit practice: Q7 Internal Auditors, Q8 Roxy Hotels)
  
• Substantive testing – This will be in the exam, but what will be tested? In December 2004 substantive testing of payroll balances was tested (Q4). In June 2004 inventories (stock) (Q3) and payables (creditors) and accruals (Q4) came up. In December 2003 payroll audit was tested (Q2). In June 2003, Inventories (stock) (Q2) and provisions were tested (Q3). In the December 2002 exam, payables (creditors) (Q3) and inventories (stock) were tested (Q5). In June 2002 cash was tested (Q2) and in December 2001 receivables (debtors) were tested (Q4). That would appear to leave non-current (fixed) assets, bank/cash and receivables (debtors) as likely candidates for examination this time round. (P&R kit practice: Q38 Springfield Nurseries, Q43 Goodfoot & Q45 Villawood Computers)
  
• Systems and controls – Again this topic will be included in the exam in some format. In December 2004 Q3 risks from a scenario had to be spotted, and controls recommended. In June 2004, they came up in the context of outsourced catering and payroll (Q5). In December 2003 controls over payroll were tested in Q2 and Q1 included controls over business risks in the areas of human resources, procurement and marketing. In June 2003, controls over non-current (fixed) assets were tested (Q6). In the December 2002 exam the sales system was tested (Q2). In June 2002 the cash system was tested (Q2) and in December 2001 Purchases/ capital expenditure were tested (Q3). Any of these could come up again: the purchases/payables and sales/receivables systems looking the most likely. (P&R kit practice: Q32 Cosmo & Q27 Internal Control Systems)
  
• Planning and risk assessment (from a scenario) – risk in one form or another comes up at every sitting. It is one of the key stages of the audit, but can also be examined in the context of a company's business risk as it was in June 2004. In December 2004, Q2 was centred around planning and the information you require, and Q1 was about spotting the risks of fraud and error. (P&R kit practice: Q17 EWheels & Q18 Nepco)
  
• Professional ethics – This is a core area not examined at the last 2 sittings. It is still a topical issue with all of the recent corporate collapses bringing the independence and professionalism of their advisors into question. Recently, confidentiality came up in December 2003 (Q6), conflicts of interest in June 2003 (Q3) and objectivity in December 2002 (Q1). Any independence issues would be ripe for examination again at this sitting. (P&R kit practice: Q10 Billington Travel & Q11 Manly).
  
• Audit/ Assurance Reports – This is a very important area of the syllabus, it is deliverable from the end of all assurance engagements. You also need to be aware of the differences between internal audit reports/ external audit reports and other assurance reports such as review reports. It has been tested in December 2003 (Q3 b and c), June 2003 (Q3c and Q5), June 2002 (Q3b) and December 2001 (Q5), but not in the last few sittings. (P&R kit practice: Q54 Audit and Review Reports, Q55 Cremorne)
  
• Parts of questions – The following topics could form discrete parts of questions at this sitting: fraud, management representations, audit regulation, materiality, e-technology (see article below) so make sure you are up to speed on these areas.

Relevant Articles
The following articles can be found in the Student Accountant magazine (or ACCA website)

• The regulatory environment, Alan Lewin, 4 January 2005
• Audit risk in a brave new world, Namasiku Liandu, 30 September 2004
• Confirmation as audit evidence, Graham Cosserat and Katherine Bagshaw, 28 October 2003
• Electronic technology and the auditor, Katherine Bagshaw, 25 June 2003
• Service organisations, Katherine Bagshaw, 26 March 2003
• Internal audit and review reports, Katherine Bagshaw, 29 January 2003
• Corporate governance in the 21st century, Namasiku Liandu, 30 September 2002
• The independence of accountants, Namasiku Liandu, 10 June 2002.
• The role of internal audit in risk management, Katherine Bagshaw, 1 March 2002.
• Technique in auditing questions, Kim Smith, 4 September 2001
• Audit and internal review, Katherine Bagshaw, 1 June 2001

Paper 3.1 - Audit & Assurance Services

FTC Singapore
Lecturer - Mr Rhys Johnson

Q1:Risk assessment and implications of an acquisition for the conduct of an audit. Group audits
Q2:Approach to an assurance engagement - engagement process,planning, procedures. Will include how
to audit” certain specified balance sheet or income statement items. Possibly PFI.
Q3:Three accounting issues - discussion of matters (accounting treatment, risks, materiality and reporting) and audit evidence.Provisions, impairments, asset valuation, RPT's are all favourite topics
Q4:Audit report - suitability of the audit report in the specified circumstances
Q5:Ethical and professional issues – likely to focus on independence,quality control, publicity, fees
Q6:Discussion question - possible topics are environmental reporting/international standards/ corporate
governance/independence and the provision of other services

Money laudering will feature at some point in the examination –most likely Q6.

FTC UK

Risk analysis and audit strategy … possibly with Money Laundering thrown in to the case study

Assurance Services - Performance measurement / prospective financial information

Accounting treatments / Materiality / Audit evidence –applied to 3 scenarios – covering usual FRSs – 3, 8, 10, 11, 12, 15, 18, 21

Audit reporting – First-Time Application of IFRSs in the UK

Professional / Ethical Issues or Practice Mamangement – Quality Control

Current Issues – SOX (Sarbanes Oxley Act) / Liability / Money Laundering

LVMT

• Business risks/financial statement risks
• Audit planning and audit strategy
• ■ Audit implication of accounting standards; FRSs 10, 11, 12 and 15 are of particular relevance
• Comment on suitability of audit opinion involving going concern
• Comments on ethical and professional issues involving confidentiality/non-compliance with laws and regulations
• General discussion on money laundering and its implication on the responsibilities/liabilities

BPP

Section A

Questions 1 and 2

Scenario questions in the context of audit risk/business risk.
May also include:
• Control suggestion and/or evaluation
• Audit evidence on Paper 2.5 accounting areas (see Q3)
• Group audit issues (including audit work on fair values)
• Planning/practice management/quality control issues
• Assurance services

Question 3

Audit evidence. Comment on the matters you would consider and the audit evidence you
would expect to find as audit manager conducting a review of audit files.
Likely to be several scenarios covering various Paper 2.5 level accounting standards, e.g:
• Earnings per share
• Borrowing costs
• Revenue recognition
• Standard costing
• Impairments
• Deferred tax
• Discontinued operations
• Intangible assets
• Related party disclosures

Section B

Question 4
Part (a): Any syllabus area. Part (b): A related question on reporting.

Question 5
Ethics, professional and quality control issues scenario question.

Question 6

Discussion question on current issues, e.g:
• Money laundering (make sure you read the examiner's recent article as likely to be
examined!)
• International convergence
• Audit exemption for small companies
• Risk-based auditing
• Corporate governance
• Laws and regulations

Relevant Articles

The examiner, Kim Smith, has written many articles and expects you to have read them and
know them. (See www.accaglobal.com/students) She often comments that students fail for
not having read the articles explaining how to tackle questions.

Read as many as you can, particularly the following:
• Money laundering, 4 February 2005
• 'Technique in auditing questions', 4 September 2001
• 'Technique in auditing questions – part 2', 17 October 2001
• 'Tackling the 'Discussion' question', 1 November 2001
• 'Professional ethics – a kloser look', 30 April 2003
• 'Divided opinion' (auditors' reports), 5 November 2002
• 'Rest assured' (assurance), 1 June 2001
• 'Audit and assurance services', 27 July 2001

Paper 3.2 - Advanced Taxation ( MYS )

PERSONAL TAXATION
a) Resident status
b)Exemption on Employment Income - 60 days, gratuity, compensation for loss of employment,
dual employment contract
c)Joint Assessment
d) Personal Finance - saving shares, unit trusts, EPF Planning
e) Partnership
f) Business ventures - sole/ partnership/ sdn bhd
g) settlement
h)Trust

RPGT -
A) RPC,
B) PARA 3 b,
C) Exchange,
D) para 17
E) para 12
F) Administrative

Islamic Instruments -
wadiah, BBA, Ijara, HP vs Leasing

Tax Administration -
a) self assessment individual, co,
b) evasion, incorrect return,
c) record keeping
d) tax agent, auditor liabilities,
e) capital statements.
f) public ruling,
g) fraud, wilful default, negligence,
h) anti tax avoidance

Tax planning for company -
a) dividends imputation,
b) utilisation of unabsorbed CA + losses,
c) acquisition of company and biz,
d) S.44 (8) and S34(6), e) rental income S.4(a),
f) Tax Audit and investigation,
g) stamp duty - computation and exemption
h) controlled transferred - interest exp, withholding tax, S4A, 107A and permanent
establishment

Specialised Industries -
a) property developer,
b) investment holding, ( May 2005 Article )
c) close end fund,
d) leasing

Special organisation -
a) co-op,
b) club,
c) charitable institution,
d) trade association

Investment Incentives -
a) acquisition of foreign owned co,
b) proprietary rights,
c) approved food production,
d) increased export for service sector,
e) pioneer status,
f) infrastructure allowance,
g) R&D,
h) approved offshore trading


Paper 3.3 - Performance Management

FTC Singapore
Lecturer - Mr Saminathan

1. Case study with CVP analysis & learning curve included to measure financial performance.Other non
financial indicators could also be included to measure performance of a service business.
2. Divisional performance measures and rewarding of managers in divisions.
3. Management control & budgeting in private & public sector.
4. Risk analysis in decision making.
5. Theory question on modern developments in MA & building sustainable cost advantages.
6. Knowledge of strategy & gap analysis could also be included as part of a question.

FTC UK

Contribution based decision-making

Practical aspects of pricing policy

Performance evaluation – financial v. non-financial & business v. non-business

The strategic framework

In addition to the above, the examiner has still not examined in any great depth the
content of the articles he has written for the students’ newsletter

Environmental management accounting – Jan 2004

http://www.acca.co.uk/publications/studentaccountant/107348

JIT & backflush accounting – Apr 2004

http://www.acca.co.uk/publications/studentaccountant/1143053

Management control – Sept 2004

http://www.acca.co.uk/publications/studentaccountant/2244397

BPP

Section A

Question 1
The longer question is likely to feature some short term planning (e.g. budgeting), requiring a
statement of profit or costs. It may include analysis of relevant costs and the scenario will be
a substantial length. The discursive elements will draw on the scenario to illustrate models
(e.g. strategic planning) and/or candidate’s own experience.
2005 P&R Kit Questions: 55 Fork Lift Trucks, 61 Privmed, 62 Motor Breakdown Services

Question 2
The second, usually shorter question, will cover either numerically calculations (e.g. costing)
with a short discursive requirement or this part of the exam may be used to test performance
measurement using KPI’s as well as more traditional performance targets.
2005 P&R Kit Questions: 45 Eatwell Restaurant, 41 Management Accounting and the Public
Sector

Section B
It seems likely two questions will be wholly discursive, following more numerical emphasis in
section A.
• If performance management hasn’t appeared in section A, a 20-mark question could
be inserted in this section.
2005 P&R Kit Questions: 30 Mission, 48 Internal and External Factors
• Modern Management Accounting Techniques within a scenario or specific industry
could require candidates to apply their knowledge.
2005 P&R Kit Questions: 20 Shipping Industry, 9 Stock Alternatives
• Finally numerical topics that could appear: learning curve, risk and uncertainty,
divisional performance (RI and ROI)
Paper 3.4 - Business Information Management

FTC Singapore
Lecturer - Mr Alex Watt

Linking IS/IT strategy to business strategy (Note: this is the core topic of the syllabus)
Web based technology – internets, extranets, intranets
Applying IS/IT for competitive advantage – five forces, value chain and generic strategy models
PEST
Outsourcing
Data warehousing and data mining
Lewin’s model for change management
Legacy systems
Project risk

FTC UK

Strategy –application of an IS/IT/IM strategy in the context of a scenario

Porters 3 generic strategies in relation to the development of e-commerce systems or the Internet

Knowledge management – problems of knowledge sharing and solutions within a business context – perhaps relating to knowledge and data workers

Data warehousing and data mining – problems of amalgamating company wide databases to facilitate data sharing

Value chain – identification of IS to support the value chain along with an explanation of its importance to the development of business strategy

Legacy systems and risk – based around the article in the March Student Accountant - could be linked to the decision to outsource the development to reduce the risk.

Lewins model and managing change – the application of the model and how problems can be reduced in relation to policies which address behaviour.

PEST analysis – application of information within a scenario to determine the internal and external issues affecting the business – further development within section b) of the question to improve the current position.

Reasons for the development of strategy and alignment issues – core topic area – yet to examine the reasons for the development of an IS strategy – alignment issues could be linked to one of the above models g value chain

Globalisation

Eis

Ssm

BPP

For each area described below, please note the reference to useful questions from BPP's
2004 Practice and Revision kit (P&R kit).
Section A
The examiner tends to provide fairly lengthy case studies, which provide information about
the business strategy, the IT history to date and the current situation. As you are likely to be
dealing with an organisation that needs to make decisions about its IT systems and
strategies, questions are often based on strategic models and approaches from the syllabus.
Questions in the June 2005 exam could ask you to analyse an organisation's current position
regarding its IT, perhaps using a model such as Porter's value chain (Q11). In order to tackle
this type of question, you need to be able to recognise the relevant business strategy in order
to make appropriate IT suggestions. Questions 51 and 52 are excellent ones to practice on
this.
A key area that all students must focus on is how to develop a business case for Information
Technology. IT facilitates business decisions, and the examiner is likely to ask you to analyse
the key business issues. A key model to understand and use is ‘Where We Are, Where We
Want to Be, Going to Get There’, and it would be useful to review the first BIM exam paper
set.
There could also be questions asking you to improve a project or development that is
experiencing problems (Q26, Q28)
Another key to review would be the human and social issues relating to IT development, and
the syllabus lists several change management theories, such as Lewin, which have yet to be
examined.
Exam technique is extremely important in this paper, so working through as many case
studies as possible is to be advised. Questions 64-66 are the questions from the examiner's
pilot paper.

Section B
Section B questions could come from anywhere in the syllabus, and there are often questions
which focus on one particular theory. The examiner also uses these questions to get
candidates to bring in 'real-life' examples, to illustrate theories, so be sure to have at your
fingertips some examples which you can use, either from your own experience, or perhaps
from other exam scenarios and questions which you have used. There is also usually one
question with a mini-scenario that can be a good one to choose, as you have a context to
work with. The examiner also uses section B to test knowledge about specific types of
technology.
Key theories that need to be understood are those of Nolan, Parsons, Porter, Earl and
Zuboff, and reviewing past BIM papers can be extremely helpful to see the style of questions
on these areas.
Key areas to cover in depth are as follows:
• E-commerce is an area that usually appears on information papers ((Q8)
• The human impact of IT has not yet been examined extensively (Q31 &32)
• Knowledge management is an area that may be prominent in future exams (Q5)

Paper 3.5 - Strategic Business Planning and Development

FTC Singapore
Lecturer - Mr Rhys Johnson

Strategic management approaches – rational, emergent
Strategic analysis – PEST, 5 Forces, BCG, Value Chain
Stakeholder mapping
Strategic options – Ansoff’s matrix, vertical integration
Marketing mix
Change management
Quality and culture
Human resource management – recruitment, motivation
Accountants role in new product developement

Any of the questions may be set in a global business context.

FTC UK

Ethics

Evaluate the importance of international issues including competition, management and regulation.

Discuss ways in which conflict between centralised control and individual creativity can be managed.

Structure

Marketing

Evaluate current position

Evaluate the tools which can be used to influence behaviour in the work place

LVMT

The examiner for this paper is Ralph Bedrock, although relatively new to this position has proved to be his own man. He has examined topics that can be considered to be ‘unfamiliar’ such as business-to-business marketing (B2B), new product development (NPD), and corporate governance. Having said that, he hasn’t deviated from the core aspects of a strategy paper so there is no cause for panic. In his examiners’ feedback, he expressed concern on the issue of time management and examination techniques and said the two ‘often proved to be the difference between candidates who passed and those who marginally failed’. So what can we expect this time:

• Stakeholders - using the Mendelow matrix
• Internal analysis for strengths and weaknesses with more emphasis on value chain and/or BCG matrix
• Environmental analysis using the PEST in a multi-national environment
• Globalisation - ‘Ethnocentrism’, ‘Polycentrism’ and Geocentrism
• Marketing - the role of the accountant in NPD
• Strategic options and evaluation - Porter and Ansoff
• Dangers of implementation Finally, we cannot over emphasise the importance of understanding the core aspects of strategic management: strategic analysis, choice and implementation. Most of the questions tend to be from these areas, so get ready.

BPP

Suggested practice questions from the BPP Practice and Revision Kit (2005 edition) are shown after the relevant area. Remember also that questions drawn from the 2003 and 2004 exam sittings, which are not contained in the 2005 P&R Kit but can be taken off www.accaglobal.com, are also an excellent source of preparation.

Section A
Always difficult to predict the subject matter of the case scenario, and in December it was rather unusually based around the control and management relationships within a large group structure of a manufacturing company. Therefore this time it might be something less complex in structure and based on the service sector.
Areas that could be included within the requirements could include
• A discussion of the relative merits of different ways of making strategy
• Stakeholder analysis and objective setting
• Application of strategic analysis models
• Evaluation of strategic objectives, using the numbers included
• Marketing issues
2005 P&R Kit Questions: 52 World-Wide Agricultural, 51 Bethesda Heights, and 50 Playwell.

Section B
• Marketing, including new product development. In part suggested by the recent article but also due the lack of marketing in the December 2004 exam.
2005 P&R Kit Questions: 24 Westport University, 26 Karaoke, 27 Product Launch, and 34 Sports Centre
• Change management. This is feasible this time because it is an important subject, which has been absent for the past few sittings.
2005 P&R Kit Questions: 20 Apex Culture, and 49 Lionel Cartwright.
• Globalisation strategy. The strategic development of global businesses was very popular when the paper was first introduced. It remains relevant and could be due another appearance.
2005 P&R Kit Questions: 41 Excalibur Sportswear, 42 Global Marketing, 43 Clothing Supply Company and 48 ALG Industries
• Ethics and corporate social responsibility. With all of the talk (and recent cases) of corporate scandal ethical behaviour is a very topical area of the syllabus
2005 P&R Kit Questions: 16 Digwell, 17 Large Financial Services Company, and 18 Acquisition

Relevant Articles
The role of the accountant in new product development - Ralph Bedrock (the examiner),January 2005

Paper 3.6 - Advanced Corporate Reporting

FTC Singapore
Lecturer - Mr Saminathan

1. Computational question on group accounts.
- piecemeal acquisition
- vertical consolidation
- disposal of subsidiary
Look out for adjustments related to financial instruments & goodwill impairment .
2. Issues related to FRS 21 especially hedging for investment in a foreign entity.
3. Issues related to fixed assets - impairment of assets with reversal of impairment losses,intangible assets
with finite & infinite life.
4. Issues related to FRS 12 - deferred tax.
5. FRS 105 Discontinuing operations
6. FRS 19 - Retirement benefit & share based payments.
7. Issues related to consolidation & groups could be a full question.
8. Environmental reporting & human capital management
Also FRS 39 issues could be included as part of any of the issues above

FTC UK

Group Income statement - with disposals / complex group structures / associates

or Group Balance sheet - with accounting adjustments

Share based payments

Accounting standards in a case study situation e.g. Pensions, EPS, deferred tax.

International issues (again!)

Corporate Governance and CSR

LVMT

• Consolidated balance sheet including adjustments for accounting errors when applying recent standards
• Leases including sale and leaseback arrangements, the differences between IAS 17 and SSAP 21 and the discussion paper on leases
• Events after the balance sheet date (FRS 21/IAS10)
• Earnings per share (FRS 22)
• Joint ventures and associates (FRS 9/IAS28& IAS31)
• Investment properties (SSAP19/IAS40) and Government grants
• A combination of different standards in one question possibly involving FRS 15, FRS 23, FRS 24, SSAP 25, FRS 11, etc
• OFR, Corporate governance and environmental reporting
• FRSs 22 through 26, with emphasis on the changes to current reporting

Finally, ensure you thoroughly understand the basic principle underpinning a broad spectrum of the syllabus. For this you MUST fully appreciate the usefulness of the Statement of Principles and its applicability to the elements of financial statements.

BPP

For each area described, please note the reference to useful questions from BPP’s Practice
and Revision kit (P&R kit).
Section A
The section A question can be on any of the traditional higher-level group accounting topics
that are not examinable in paper 2.5. Complex group structures or disposals of subsidiaries
appear to be the most likely topics having not appeared for quite some time. (Questions: X
Group, Wright)

Section B
Section B questions tend to range over a number of topics and may include:
• International reconciliations and the continuing attempts to bring about international
harmonisation. IFRS 1 on First time Adoption of IFRS has already been examined but
could reappear due to its topicality.
• “Mixed” questions can include a wide range of new and longer-established areas of
accounting. Issues relating to recognition and impairment of tangible and intangible
assets have been a recurring theme along with provisions and retirement benefits.
• Accounting for financial instruments could be tested.
• The new standards on share-based payment could be tested in numerical detail.
• Performance and valuation measures and how these are affected by accounting
policies often appear in the ACR exam. (Good questions for practice on these areas
include: Impairment of assets, Finaleyes, Retirement Benefits, Vacs, Low Paints (Q2 within
Mock Exam 2 in the UK kit), Desolve, FREDs 23 and 30)
• A discussion question looking at current developments in corporate reporting. Social and
environmental reporting can appear here as well as business ethics, and reporting on the
internet. (Questions: Glowball, Mineral)

Relevant Articles
Useful articles – www.accaglobal.com/students
• Disposal of non-current assets and presentation of discontinued operations, David
Towers, April 2004
• Improving standards, Graham Holt, August 2004
• First-time adoption of International Financial Reporting Standards, Steve Scott,
January 2005
• Convergence of UK GAAP to IAS : Parts 1, 2, and 3, Steve Lawrence, July 2002,
September 2002, December 2002
• Deferred tax, Paul Robins, July 2002
• A review of recent FREDs, Graham Holt, September 2002
• Group accounting: associated companies and negative goodwill, Steve Scott, April 2003

Paper 3.7 - Strategic Financial Management

FTC Singapore
Lecturers - Mr Nicholas Blain/Mr Saminathan

- Mergers & Acquisitions, Restructuring
- Valuations
- International investment appraisal
- Interest rate risk and hedging (futures/options)
- theory of CAPM
- Capital structure, inc Modigliani & Miller
- Corporate governance
- WTO and free trade
- International trade risks

FTC UK

Section A:

1) Merger and Acquisitions - Company Valuation (NAV, DVM and P/E Methods) and Management Buy
Outs. Share for Share exchange, Going Private.
2) Risk management - Interest rate risk / Currency Risk
3) Overseas NPV - including the measurement of past performance and ethics.
4) Investment Appraisal - WACC, Risk adjusted WACC, The management of cash flows.

Section B.

1) Dividend Policy/Term Structure of Interest rate
2) Portfolio Theory and CAPM – summary and alpha tables
3) International economics – I.M.F., Political Risk, Foreign Exchange Rate Systems, Balance of payments deficits. Control of foreign subsidiaries, Treasury Management.
4) The Black Scholes Option Valuation Model – the application of the Put Call Parity Rule

LCA

• Acquisition decision/MBO
• Foreign exchange risk
• Capital structure
• Investment appraisal/FDI
• Interest rate collars

BPP

Section A
Question 1
Question 1 my feature a question on mergers & acquisitions. This could include valuations based on several techniques as well as changes in shareholder wealth post-merger. Similar questions in the BPP revision kit: Q34 Oakton, Q35 Minprice

Question 2
Question 2 could revolve around interest rate management, specifically hedging. Similar questions in the revision kit: Q56 Projections, Q58 PZP

Section B
Subjects likely to feature include:
• Adjusted Present Value - Q32 Strayer
• International Financing - Q61 Trade Blocs, Q62 IMF, Q63 Beela
• Dividend Policy - Q76 Serty, Q77 Tigger
• Corporate Objectives - Q1 Stakeholders, Q2 International Corporate Governance

Health Warning! The examiners deliberately try to avoid question spotting. Just because a question featured last time, doesn’t mean it won’t feature this time. Use the tips as areas to have a good look at, but remember that no one knows what is in the exam, apart from the examiner. Your safest bet is to achieve good syllabus coverage in your revision, as the examiner aims to do in the exam.

Disclaimer : All the above are reproduced materials,all the copyright remained to the original sources and i shall not take any responsibility towards the accuracy and reliance on the tips.

Imporatant Articles for June 2005 Exam

There are few articles that are published in the May Student Accountant which might be very useful to the students who sit the exam in June 2005.Check it out.

The files can be downloaded from the link below :

1.Financial instrument-Paper 3.6

Link : http://content.ll-0.com/accastudent/financial_instruments05.pdf

2.The taxation of investment holding companies - Paper 3.2 ( MYS )

Link : http://content.ll-0.com/accastudent/taxation_of_i_v_c05.pdf

3.E-Commerce - Paper 3.4 & 3.5

Link : http://content.ll-0.com/accastudent/e-commerce.pdf

10 ways to: beat exam nerves

There’s no getting away from it. Sitting your exams can be a stressful experience. However, there are strategies you can employ which will help you cope. We asked you for your top tips, and here are some of the best.

1. Think positive

A positive mindset can do wonders for your confidence in the exam hall. Matt Holden, ACCA course manager and management tutor at Reed advises: ‘When you start getting those exam nerves and negative thoughts you have to counter them with positive thoughts. Tell yourself that you are going to pass the exam.

A positive mindset will improve your chances, so why not? Make sure you have done the right kind of studying – this doesn’t mean just reading notes all day and night, you must also practise past exam questions. If you are unable to complete any part of a question when answering a past paper, don’t just ignore it – phone a friend, or better still, contact your tutor.

Remember that if you find a question difficult, it’s likely that other candidates will too.’ Fifteen minutes before the start of the exam, instead of spending time worrying about the next three hours and what the exam questions will be about, get your brain warmed up. Go over a few of the basics in your mind – get yourself tuned into the subject.’ Girish Samtani, a Part 3 student from Singapore, agrees: ‘It’s never easy to manage exam stress but a positive approach and not fearing exams is where you should start. It’s all about attitude.’

2. Relax

Many students will be familiar with that shaky, nauseous feeling you can sometimes get as you enter the exam hall. But there are ways you can ease these feelings. Victor Zhou, a Part 3 student from Shanghai, has these tips for controlling anxiety: ‘Before entering the exam hall, I feel very nervous, even though I know I’m well-prepared. Try to breathe more slowly and deeply, and say to yourself: ‘Take it easy, just relax’. You’ll find the anxiety often passes quite quickly and you can concentrate on the questions.’

3. Be prepared

The best route to confidence in the exam hall is knowing you’ve prepared as much as you can. ‘Know a bit about every topic in the relevant module,’ advises Esinam Baeta, an affiliate from Ghana. ‘This way you will feel confident enough to talk about any topic relevant to the question.’ Question spotting is not recommended. Know your way around the syllabus.

4. Keep in time

Keeping track of time in the exam hall can be difficult when you are concentrating on completing your exam. Part 3 student Deonarine Gopaul from Guyana suggests a way to avoid this: ‘I plan the exact time that each question should be finished. This stops me panicking in the exam, wondering whether I’m going to finish or not.’

5. Keep it healthy

There are certain types of food and drink that will help you think clearly during your exam. Drinking water before you go helps, but don’t drink too much otherwise you’ll be going to the toilet all the time. Keep a small bottle of water on your desk to keep yourself hydrated as the exam progresses. Make sure you have something to eat at least an hour before the exam starts so you don’t get disturbed by hunger pangs. But be careful not to eat too much as this can make you sleepy. ‘Drinking herbal tea, especially camomile, can help you relax before an exam,’ points out Part 3 student Claude Licari from Malta. ‘Coffee and caffeinated drinks may stimulate you, but this doesn’t last long and you’ll end up feeling tired.’

6. Treat yourself

Arrange something fun for after the exam. There’s nothing more you can do if you haven’t got any more exams to sit – so why not relax? Shane Honey, a Part 2 student from the UK, says: ‘I find that arranging a treat after an exam is good to reward myself for all the effort I’ve put into studying. This helps to reduce my worries of performing well in the exam as I have the treat to look forward to. For example, last year I met my daughter afterwards and we both went ice-skating and then to a cafe.’

7. Keep it to yourself

Even though it’s tempting to talk to other students as you prepare to enter the exam hall – sometimes it isn’t the best policy. ‘On the actual day of the exam refrain from discussing the syllabus with other students. You might discover that you didn’t cover certain areas, and as a result will needlessly panic before the exam,’ says David Mwonzora, a Part 2 student from Zimbabwe.

8. Keep busy

Before your exam, worrying and thinking too much about what is ahead of you can sometimes make your anxiety worse. An ideal way to combat this is to take your mind off it by finding something to do. Apollon Leontas, a Part 2 student from the UK, offers the following advice: ‘Take a walk in the park, or try drawing or painting to reduce stress and relax your mind. Half an hour of physical exercise is also another way to release tension. Lying down and listening to music can also be a great way to keep your mind off the exams.’

9. Ask for help

'If you have one, meet with your tutor to discuss topics you don’t understand,’ says Tasha Campbell, a CAT student from Jamaica. To get maximum benefit, summarise your knowledge of the syllabus and check if there is anything missing or anything you don’t understand. Do this a couple of weeks before the exam, then arrange to see your tutor and make notes from their advice. Then make sure you include it in your revision sessions so it’s all fresh in your mind before your exam.

10. Get together

If you can, revising in a group can really help, and will remind you that you’re not the only one facing the exams. ‘Instead of revising alone get together with a group of friends,’ says Maham Farooqui, a Part 1 student from Pakistan. ‘Try and meet weekly and set targets for the following week, for example choose two subject areas to study. Then you can test each other and all attempt past paper questions on those topics. This helps to make you feel really confident.’

我喜歡這句話 ~~~

我喜歡這句話 ~~~

「人生不是得到…就是學到」~~~for you

這句話是很健康的人生觀 :
你不是得到一份圓滿的因緣；就是學到怎樣更靠近幸福。
你不是得到勝利；就是學到如何避免失敗。
你不是得到最終自己想要的結果；就是學到…世事總不會盡如人意。

緣分是.......... 會計原則
愛情是.......... 無形資產
愛人是.......... 應付帳款
想他是.......... 日 記 簿
吵架是 ..........壞 帳
暗戀是.......... 收不回的呆帳
錯愛是 ..........高估淨利
分手是.......... 結帳分錄
寂寞是.......... 累計折舊
誤會是.......... 錯誤分錄
解釋是.......... 更正分錄
復合是.......... 回轉分錄
眼淚是.......... 業主權益
人情是.......... 流動資產
回憶是.......... 損益彙總

心 ～ 不 是 固 定 資 產

不是得到 …就是學到

這樣的人生沒有什麼好失去和非得要斤斤計較的。

I like this sentence ~~~

“If life is not get,then it is learnt” ~~~ for you

I think this sentence is a very positive life principle :

If you get a perfection in your relationship,you will learn how to get to your happiness closer.

If you not get the victory , you will learn how to avoid failure.

If you not get what is the end result you want,you will learn there is nothing perfect in this world.

Faith is Accounting Principles
Love is Intangible Assets
Lover is Account Payable
Miss you is Journal
Quarrel is Bad Debt
Love secretly is Unrecoverable Bad Debt
Love wrongly is Overestimate of Net Profit
Separate is Closing Entries
Lonely is Accumulated Depreciation
Misunderstanding is Wrong Entries
Explanation is Correcting the Entries
Reunion is Reversing the Entries
Tears is Owner’s Rights
Social Relationship is Current Assets
Memory is Profit and Loss Account

Heart is not Fixed Assets
If you not get,you learnt.

Therefore in life,there are nothing to scare to lose and also not necessary to be calculative.

Careful plotting will pay dividends

Our countdown to the June 2005 exams, brought to you exclusively by LVMT Business School and PQ Magazine. Your feedback please!

ACCA PAPER 2.4
Financial management & control

This paper is divided into two sections. Section A is a compulsory scenario-based question of 50 marks. Section B has four questions of 25 marks each , the candidate answers only two.

The examiner, Tony Head, has indicated that the emphasis for Section A will be on financial management. In preparation for the June 2005 exam, the student should cover (and practice) questions on the following areas:

* Financial management objectives.
* Management of working capital (financing types, debt factoring/ discounting, cash and stock).
* Sources of finance (equity and debt).
* Capital expenditure and investment (NPV, IRR, capital rationing, borrow or leasing options).

One of the questions in section B, Tony has warned, will be entirely discursive. The key areas to cover and practice on management accounting are:

* Decision-making (product mix, make/buy decisions).
* Standard costing and variance analysis (mix and yield variances, operating statement).
* Budgeting and budgetary control (production budget, cash budgets, rolling budgets, top-down/bottom-up).

In order to pass this paper, candidates should:

* Have a clear understanding of the objectives of the exam as explained in the syllabus and study guide.

* Practice examination style questions on a regular basis. Thorough preparation is essential and the importance of regular practice cannot be over-emphasised. Do not procrastinate: start right away.

* Be able to communicate their understanding clearly in an examination context. Students generally concentrate on the numbers and ignore the theories, hoping that they will take care of themselves. However, experience has shown that candidates need as much practice on discursive type of questions as computational type of questions. The examiner, remember, is not only looking at your ability to calculate the figures but also your understanding of those figures.

* Present legible scripts and avoid poor presentation or poor handwriting. Good presentation and good handwriting make it easier for you to be given appropriate credit for your answer. Write in black or blue ink and avoid using other colours such as green or red. Do not use pencil. Start each question on a fresh page, and leave a page or two between answers.

* Be able to identify the appropriate tools, methods or techniques to apply to financial management and management accounting problems , don't expect these to be given by the examiner. Candidates must be able to critically assess the tools and techniques of financial management and control.

* Make an assumption whenever the question is not clear. However, where a question is clear, there is no room for assumption, otherwise this amounts to you answering a question you would have liked to be asked rather than the question actually asked. Remember to state your assumptions on the face of your script when made.

* Isaac Osei-Kwame is head of the ACCA College at LVMT Business School

Examiners' feedback

Students' weak spots are revealed by the experts

Financial instruments was a major weakspot for ACCA students who sat Paper 3.6 last December, according to examiners.

Students lack of knowledge about recent standards let them down. Many only answered three out of the four questions.

Other fundamental weaknesses in students' performance included questions on group reconstructions and case study-type questions.

Students were urged to increase their knowledge by reading more articles in professional journals and the accounting press.

Prizewinners share their exam secrets

To all my friends who are struggling for your exam,

I wish to share this article with you,maybe you can get some idea on how to deal with your exam pressure or study method from the experience of the prizewinners.Even though they are not the prizewinners of ACCA,but i think the other professional exams are dealt with similar ways.So again,all the best to your life and studies.

Ching

Top trainees let you know how they did it

ICAEW
Caroline Luff, KPMG
Business Management, first place (equal) and the Railton Prize

Preparation

• Begin working steadily from the beginning of your college course. This allows you to consolidate your knowledge over the course and prevents having to cram towards the end.

• Ensure that you take time off studying regularly. For example, reward yourself for working hard during the week by taking the weekend off. Obviously, as you approach your exams, this becomes harder.

• Use progress tests and mocks as practice for the real exams. This makes sitting your exams far less stressful as you know what to expect.

• Do not worry if completing all practice questions prior to sitting the exams appears daunting. Ensure you have covered all topics and that you have focused on any areas you find hard.

• Writing notes as you go along is an effective way of preparing for revision. You will probably not have time to write notes later and the learning texts are too detailed for revision.

• Speak to tutors or more senior members of your firm about any areas you struggle with. People are always happy to help as they have been through the same experience.

• Never compare your style of working to your peers, it will only cause you to panic. Remember that everyone works differently.

• If you have an open text exam, such as, FR or tax, ensure that you are really familiar with the text – use it for all your practice questions and progress tests and highlight the important areas.

• Ensure by the time you sit the exam, that you have completed several past papers and timed questions. These are the best form of practice and get you used to the time pressure.

• If you are sitting several exams at once, be careful not to focus on the one or two that you find harder at the expense of the other subjects. Plan your time so as to spread your work over all subjects.

• OTs are very useful for quickly testing your knowledge. Questions in the exams never vary greatly from the practice questions. Ensure that you practise OTs regularly throughout your study period.

• Make sure you stay positive. It is really easy to get stressed by the volume of work and the pressure of these exams. Just remember that it will be worth it in the end.

Exam technique

• Don’t try to change your approach or technique in the real exam. Stick with what you know works for you.

• It sounds obvious, but get a good night’s sleep before the exam. ICAEW exams are always time pressured, you need to be alert as you won’t have time to go back and correct mistakes.

• Try to stay calm in the exam. Remember that as long as you are prepared, it is likely that if you find something hard, everyone else will be in the same position.

• At the start of the paper, work out how much time you have available for each question and stick to this.

CIMA
Emily Tyler, AstraZeneca
Final level, first place

Preparation

• Experiment with different revision techniques. There is plenty of advice available, but in the end you need to identify what works for you.

• Using your holiday as revision time may not sound that attractive, but if you can get through your exams as early as possible then studying won’t take up the whole of your life. You also need to stay positive and be determined to succeed.

• Keep practising questions and review them afterwards, focusing on the areas that you find the hardest. Go back to the difficult questions and do them again, trying to improve on previous efforts.

• Try and pace your revision and don’t leave it too late. Take regular breaks and plan some nice diversions to break up the work.

Exam technique

• Make sure you understand the format of each exam. You should go into the exam hall with a clear understanding of what form the questions will take and a strategy for tackling them. Go in with a plan in terms of the order in which you’ll be answering questions – and try and stick to it.

• Keep a watch in sight on the desk

AAT
Anne Hardy, Monahans
AAT Top up – Audit Unit first place (equal) candidate and Carter Prize winner

• Make a timetable and stick to it. Spread the chapters to be revised over the weeks up to the exam, leaving a few weeks at the end for exam question practice.

• Practise OTs and short form questions until you can get every single one right and they become familiar. Quite often, similar questions come up in the exam and the quicker you can do these, the more time you will have left for the longer questions.

• I made my own short questions and answers for each chapter and used these as a revision tool. It quickly highlights any areas you have not understood and need to revisit.

• Practise as many exam style questions as you can and read the marking guide to see how many marks you would have obtained and how you could have been given more marks.• Make sure revision doesn’t take over your whole life!

AAT
Dawn Black, GT Grant and Co
AAT Top up – Tax Units first place candidate and Carter Prize winner

Preparation

• I prepared a timetable of three hours worth of exact questions from the revision guides to answer each night after work and stuck to it.

• I ensured I stopped everything by around 8.30pm and either watched TV or read a book to unwind before bedtime.

• I attempted every revision question then marked it and then repeated the question about a week later to ensure I understood the question and could improve upon the answer.

• I gave myself one weekend every month off to go out and see friends and to relax.

• I had lots of little breaks, say every two questions, and walked into a different room from that I was studying in.

• I made sure that the food I had in the house was easy to make and convenient so that I could snack without wasting valuable revision time.

Exam technique

• On the morning of the exam, I read through some notes I had made earlier on particularly troublesome areas. I read the notes through once and then put them away.

• I ensured I had a light breakfast.

• I packed bag the night before for all exam materials.

• I met up with friends before the exam so we could all support each other.

• Once in the exam hall I carefully read through each question at a time and calculated how much time I had. I then did not go over this time.

• At the end I came to the conclusion that there was nothing more I could do and did not dwell on any difficult areas but moved on to revision for the next exam.